FTSE 100 led lower by miners and financials after Chinese PM...| MENAFN.COM

Thursday, 02 February 2023 06:28 GMT

FTSE 100 led lower by miners and financials after Chinese PMI shocker

(MENAFN- ProactiveInvestors)If investors thought the days of market plunges were over they got a shock today as sellers returned in the wake of Chinese economic data. The FTSE 100 index fell 189 points to 6059 following another contraction in Chinese manufacturing figures overnight. Markets were expecting a decline in activity but analysts said the data simply confirmed that Chinese economic momentum was slowing down and that Beijing might miss its GDP targets. There was mixed economic news in Europe where stronger Purchasing Manager's Index (PMI) numbers from Germany and Spain contrasted with weaker figures in the UK France and Italy. In Germany manufacturing PMI figures hit a 16-month high in August and Spanish output growth picked up to a three-month high. In the UK however the headline seasonally adjusted Markit/CIPS PMI dipped slightly to 51.5 in August from 51.9 in July and well below the average of about 54 since the start of 2013. Mining stocks bore the brunt of the damage today as investors mulled the impact of the Chinese data. With global stock markets tumbling wealth management firms such as Old Mutual and St James's Place also took a shoeing while the only Footsie stock to make headway today was Meggitt. In thin corporate news RSA Insurance (LON:RSA) was outperforming the market after talk that the UK firm which has received a takeover approach from Swiss rival Zurich Insurance could face a rival bid from Allianz of Germany or Generali of Italy. RSA shares fell 7.5p to 506.5p. Outside of the big-cap arena Aga Rangemaster (LON:AGA) heated up 26.75p to 210p as it was revealed it has opened its books to enable US domestic appliances maker Whirlpool to make a decision on whether to counter the bid for Aga from Middleby that is on the table. African Potash (LON:AFPO) one of this year's star performers shot up again advancing 13% to 2.125p as it signed a second provisional fertiliser deal in as many weeks. Hummingbird Energy (LON:HUM) was wanted after it topped up the bridging loan with fund manager Taurus by another US$5mln. The additional cash will fund due diligence and development work at the Yanfolila gold project in Mali. Hummingbird's shares rose 2p to 24.75p. Energy group Entu (LON:ENTU) dropped 27p to 65.5p as it ditched its loss-making solar business and issued a profit warning for 2015.

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